A buyer in Palm Beach County is purchasing a waterfront home for $850,000 with a jumbo loan of $650,000. The lender charges 1.5% origination fee, 0.75% discount points, and a $1,200 underwriting fee. The documentary stamp tax on the deed is $3.00 per $1,000, and intangible tax on the mortgage is $2.00 per $1,000. If the buyer pays all lender fees and intangible tax, while the seller pays deed stamps, what is the buyer's total cost for these items?
Correct Answer
C) $17,150
Correct: Origination fee: $650,000 × 1.5% = $9,750. Discount points: $650,000 × 0.75% = $4,875. Underwriting: $1,200. Intangible tax: ($650,000 ÷ $1,000) × $2.00 = $1,300. Buyer's total: $9,750 + $4,875 + $1,200 + $1,300 = $17,125. Why not A: This calculation is missing some components. Why not B: This includes an error in the percentage calculations. Why not D: This incorrectly includes the deed stamps paid by seller.
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In Florida, all of the following closing costs are typically negotiable between buyer and seller EXCEPT:
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A real estate licensee in Fort Lauderdale is representing a buyer who received their Closing Disclosure three days before the scheduled closing. The buyer notices that the lender's title insurance premium increased by $300 from the Loan Estimate, and the appraisal fee increased by $75 due to the property's unique features requiring additional analysis. What should the licensee advise the buyer?